Current Report No. 124/2016: Agreement for acquisition of shares in Espand Soluciones de Gestion S.L.

The Management Board of KRUK S.A. (the “Company” or “Buyer”) announces that on December 20th 2016 the Company concluded an agreement with the shareholders of Espand Soluciones de Gestion S.L. of Madrid, Spain (“Espand”) for acquisition of 100% of the shares in Espand (the “Shares”), (the “Agreement”). Acceptance of the offer to acquire the Shares was announced in the Company’s Current Report No. 123/2016 of December 19th 2016. The subject matter of the Agreement is the acquisition of 100% of the shares in Espand, free and clear of any encumbrances, restrictions or third-party rights. Espand’s business involves the management of purchased debt portfolios and credit management services in Spain. Espand’s 2015 consolidated revenue amounted to EUR 4.1m (PLN 18.1m at the PLN/EUR mid-rate quoted by the NBP for December 20th 2016).